Economic nationalism

Definition

Economic nationalism is an ideology that emphasizes the importance of a country's economic interests and promotes policies that protect and enhance domestic industries and markets. It often advocates for government intervention in the economy to achieve self-sufficiency, promote national production, and limit foreign influence. This concept is closely linked to policies aimed at fostering national identity through economic growth, which can be seen in various periods of Canadian history.

5 Must Know Facts For Your Next Test

1. The National Policy, implemented in 1879, aimed to foster economic nationalism by establishing protective tariffs, building a transcontinental railway, and encouraging immigration to develop Canada's economy.
2. Economic nationalism influenced labor movements in Canada as workers sought better wages and conditions, aligning their demands with the idea of supporting Canadian industries over foreign competition.
3. Under Pierre Trudeau, economic nationalism was reflected in policies that aimed to promote Canadian ownership of businesses and resources, leading to initiatives such as the National Energy Program.
4. Economic nationalism can lead to tensions with globalization, as the push for domestic protection can conflict with free trade agreements and international economic cooperation.
5. The historical context of economic nationalism in Canada often intersects with issues of regional disparities, where certain provinces push for policies that prioritize their local economies over national interests.

Review Questions

• How did the National Policy reflect the principles of economic nationalism, and what were its intended impacts on the Canadian economy?
  • The National Policy was a clear embodiment of economic nationalism as it introduced protective tariffs to shield Canadian industries from foreign competition. The plan aimed to stimulate domestic manufacturing while simultaneously encouraging immigration and infrastructure development through the railway. Its intended impact was to create a self-sufficient economy that would unite the country and promote economic growth across various regions.
• Discuss how economic nationalism shaped labor movements in Canada during industrialization and what challenges arose from this alignment.
  • During industrialization, economic nationalism played a significant role in shaping labor movements as workers rallied for better wages and working conditions by emphasizing the need to support Canadian businesses. This alignment often faced challenges, such as conflicts between labor rights and the interests of employers who benefited from lower costs associated with foreign labor. Additionally, the push for protectionist measures sometimes led to tensions between different regional economies, as some areas prioritized local jobs while others relied on imported goods.
• Evaluate how Trudeau's approach to economic nationalism represented a shift in Canadian policy and its implications for international relations.
  • Trudeau's approach to economic nationalism marked a notable shift in Canadian policy as it sought to increase Canadian control over key industries, particularly with initiatives like the National Energy Program. This strategy aimed to reduce dependency on foreign investments and emphasize Canadian sovereignty over natural resources. However, this stance also had implications for international relations, leading to tensions with trade partners like the United States, especially when perceived as barriers to free trade or investments, thus highlighting the delicate balance between national interests and globalization.

Related terms

Protectionism:

An economic policy that restricts imports through tariffs and quotas to protect domestic industries from foreign competition.

Tariff: A tax imposed on imported goods and services, used to raise revenue for the government and protect domestic producers.

Self-sufficiency: The ability of a country to fulfill its own needs without relying on external sources, often pursued through economic policies promoting local production.